Single-member LLC, foreign owner, no US activity
Delaware or Wyoming SMLLC. One non-US owner. Payments received from clients worldwide, no US employees, no US office. The standard 5472 service handles this cleanly.
Form 5472
Annual Form 5472 and the pro-forma 1120 for foreign-owned single-member LLCs.
One filing per LLC, per tax year. Reviewed by an Enrolled Agent or CPA. Faxed to the IRS with confirmation stored on your record.
At a glance
The key facts.
- Form
- 5472 + pro-forma 1120
- Due
- 15 April (calendar FY)
- Extension
- Form 7004 → 15 October
- Method
- Fax or mail
Who this is for
Non-US founders with a US disregarded LLC.
SMLLC with the owner relocating mid-year
If the owner's residency changed partway through the tax year, we route to a CPA review for the part-year classification. Same product, extra review step.
Multi-member, corp election, or US activity
Multi-member LLCs file 1065 + 5472. A corp election (Form 8832) means a full 1120, not a pro-forma. These go to our expert desk for scoping.
$25,000 per form, per year
The penalty for missing Form 5472 starts at $25,000.
Under 26 U.S.C. §6038A(d), the IRS can assess a $25,000 base penalty per 5472 per year, plus an additional $25,000 for each 30-day period of continuing non-compliance once it notifies you. It can also hold the full Form 1120 statute of limitations open indefinitely — a silent cost that catches founders years later.
Two-person review
A reviewer checklist, then an EA/CPA signs it off.
Nothing reaches the IRS without both approvals and your signature. The preparer, reviewer, and approver are three different people — a hard enforced separation in our workflow, not an aspiration. Every reviewer action is immutable and visible on your audit history.
- Legal name matches the EIN letter ✓
- Related-party totals tie to tagged transactions ✓
- 12-month statement coverage ✓
- EA/CPA sign-off Approved
The full workflow
Eight steps from intake to filed.
- 01
Intake
Company, EIN letter, owner profile. We validate everything against the CP 575 or 147C.
- 02
Statements
Twelve months of coverage across every active business account.
- 03
Transaction tagging
Related-party flow identified. No "unclear" tags remain at submit.
- 04
Preparation
Form 5472 + pro-forma 1120 with the "Foreign-owned U.S. DE" header.
- 05
Two-person review
Reviewer runs the checklist, then an EA or CPA signs it off.
- 06
E-sign & fax
You e-sign, we fax, the confirmation page is stored on your filing.
- 07
Proof pack
Download the filing, the fax confirmation, and the review history.
- 08
Next year
Reminders queued; next year's calendar pre-populates from this year.
Common mistakes
Six things we catch during review.
-
Treating zero income as "nothing to file"
Even a single capital contribution during formation is a reportable transaction. A 5472 is required for every year the LLC exists with a foreign owner above 25%.
-
Mis-matching the legal name
The LLC's legal name on the 5472 and on the CP 575 letter must match character-for-character. We validate against the IRS record during intake.
-
Missing the pro-forma 1120 header
Without "Foreign-owned U.S. DE" at the top of the pro-forma 1120, the attachment may not route correctly inside the IRS and can be rejected.
-
E-filing attempts
The IRS does not e-file this combination for disregarded entities. We fax by default and store the confirmation page.
-
Owner-paid expenses forgotten
If you (the owner) paid an LLC expense from your personal account, that is a related-party transaction. These are the most commonly-missed tags.
-
Waiting for the deadline
The 15 April cliff is real. Statement intake, review, and fax add days. We lock the filing into review by 1 April to leave a buffer.
FAQ
Form 5472 questions, answered.
Who has to file Form 5472?
A US corporation or a US-disregarded entity with a 25%-or-more foreign owner (direct or constructive) and reportable transactions, including a foreign-owned single-member LLC treated as a disregarded entity. See 26 CFR §1.6038A-1 for the full attribution rules.
What is a "pro-forma" 1120?
A nearly-blank Form 1120 used as a cover sheet for Form 5472 when the LLC is a disregarded entity. We mark the header "Foreign-owned U.S. DE" and fill only the identifying fields plus the required attachments. The schedules are left blank — the actual information return is the 5472.
When is it due?
The 15th day of the 4th month after the LLC's tax year end — 15 April for a calendar year, extendable to 15 October with Form 7004 filed on or before the original date.
Does the LLC need an EIN?
Yes. A foreign-owned LLC must have an EIN to file 5472. We can't apply for the EIN itself, but we accept your CP 575 or 147C letter during intake and validate the match.
What counts as a "reportable transaction"?
Transactions between the LLC and its 25%+ foreign owner (or related parties): capital contributions, distributions, loans and repayments, services, expenses paid by the owner for the LLC, and others listed in the Form 5472 instructions and 26 CFR §1.6038A-2.
Can I file 5472 electronically?
Form 5472 for a disregarded entity is filed by fax or mail; the IRS does not accept e-file for this combination. BorderFile files by fax and stores the confirmation page.
What if I missed last year?
The Late / catch-up plan handles prior-year filings and includes a reasonable-cause penalty-abatement memo. First-time abatement is often available for a first-year miss.
What if my EIN letter has a slightly different name from my LLC formation certificate?
The IRS requires an exact match on 5472. During intake we flag mismatches and either (a) use a 147C letter from the IRS to confirm the IRS-record name or (b) help you correct the formation documents at the state level before we file.